Table of Contents

1. Industry Overview..................................................................................................................1
2. Executive summary................................................................................................................1

2.1 Product & Services...............................................................................................................3

2.2 Our Mission and Vision statement................................................................................2

3. Business structure and Roles and responsibilities...............................................................4

3.1 Business description and structure.....................................................................................4

3.2 Roles and Responsibilities...................................................................................................5

4. SWAT Analysis.......................................................................................................................8
5. Market Analysis....................................................................................................................10

5.1 Market Trend.....................................................................................................................10

5.2 The Target markets...........................................................................................................10

6. Sales and marketing strategies............................................................................................12

6.1 Sources of Income..............................................................................................................12

6.3 . Market research and strategies......................................................................................14
6.4. Our Pricing Strategy.........................................................................................................15
6.5 Payment Options................................................................................................................16

7. Publicity and advertising strategies....................................................................................17

8. Financial Plan.......................................................................................................................17

8.1 . Startup Expenditure (Budget).....................................................................................17

8.2. Generating Funds / Startup Capital................................................................................19

9. Sustainability and Expansion Strategy...............................................................................20

10. Conclusion …………………………………………………………………………………19

 1. Industry Overview
Audit firms are certified to audit or manage the accounting records of public as well as

private organizations and to demonstrate generally accepted and best practices in Ethiopia. The

firm provides a variety of accounting services, including auditing accounting records, designing

an accounting system, tax preparation, bookkeeping, preparing financial statements, providing

advice on matters related to accounting, and other accounting services. The accounting services

market has loads of small business operators servicing a wide range of clients ranging from

start–ups to well-established businesses.

The Accounting Services industry should be well-developed and organized. The services

line of business will continue to be in high demand by business establishments in Ethiopia, most

especially as the number of businesses and employees increases. Companies and organizations

are also expected to continue to outsource their accounting functions to focus their attention on

their core area of operations and to ensure their financial records are correct and in line with the

law.

2. .Executive summary
This business plan is prepared for the Establishment of an Accredited Audit firm in

Addis Ababa called Mefitihe Auditing Firm P.L.C. with a primary objective of offering

financial support and consultation that will be based in Addis Ababa. The company will provide

all aspects of accounting-related services; such as auditing accounting records, designing

accounting systems, preparing financial statements, developing budgets, tax preparation, and

providing advice on matters related to accounting. Since the firm requires certain standards, we

are well-trained, certified, and well-equipped to provide excellent service.

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 The focus of our company is client satisfaction and result-driven service through an

affordable fee that won't put pressure on both client and the company. We will offer a standard

accounting service to individuals, corporates, local NGOs, and small businesses.

Here in our firm, the client’s best interest will be served and everything we do is guided

by our values and professional manners. Most importantly, we will guarantee that we hire

professionals who are well-experienced in financial consulting, accounting, taxation,

bookkeeping, and payroll administration.

We will make the working environment a human, sustainable approach to earning a

living, and living in our world for all employees and partners. The plan is to make the business

one of the leading brands in the accounting services industry in the whole of Addis Ababa City

The Management aspect of the plan to be established is one area for which the

assessment generated valuable information. Accordingly, the firm will be staffed by required

consultants, administrative, and other support employees. All in all, it will create a job

opportunity for six employees.

The total working capital required to provide the service is estimated to be 1,600,000.00

of which, ETB 1,000,000.00 is assumed to be contributed from the savings ETB 300,000.00

from friends and the remaining 300,000.00 ETB from families.

The profit and the losses projection made shows that the businesses have a net profit of

Ethiopian ETB 724,600.00 at the end of the first year

2.1.Our Mission and Vision statement

The mission of Mefitihe Auditing Firm P.L.C is to provide fast and reliable accounting

services and other financial services as well as consulting to individuals, small and medium

businesses, and organizations. We will ensure that we hold ourselves accountable to the highest

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standards by meeting our client’s needs precisely and completely. We will cultivate a working

environment that provides a human, sustainable approach to earning a living, and living in our

world, for our partners, employees, and our clients. Also, we will position the business to

become one of the leading brands in the accounting services line of business in Addis Ababa.

Vision Statement: - Our vision is to build an audit service firm brand that will become the

number one choice for both smaller businesses and corporate clients in Addis Ababa city. Our

vision reflects integrity, service, excellence, and teamwork valued by our company.

2.2. Product & Services

Our Firm is going to offer varieties of services within the scope of the accounting

services industry in Ethiopia. Our intention in starting our audit services firm is to work with

both smaller business organizations (startup shops) and also well – established corporate &

organizations that would want to outsource accounting services.

We are well prepared to make profits from the industry and will do all that is permitted

by the law in Ethiopia to achieve our business goals, aim, and ambition. Our business offerings

are listed below;

 Review the accounts of companies and other organization’s to ensure their financial

records are correct and in line with the law.

 Providing accounting advice to corporate clients

 Providing accounting advice to individuals and small businesses

 Accounts preparation

 Financial auditing services

 Financial statement review services

 General accounting services

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  Tax planning and consulting services

 Corporate tax preparation and representative services and other financial consulting

and advisory-related services.

3. Business structure and Roles and responsibilities

3.1 Business description and structure 

Typically, we would have preferred three staff members, but as part of our plan to build a

standard accounting services firm in Addis Ababa, we decided to have 6 employees. This would

help us to get it right from the beginning to ensure that we have competent, honest, and

hardworking employees to occupy all the available positions in our firm.

We will confirm that we only hire people that are qualified, honest, hardworking,

customer-centric, and ready to work to help us build a good business that will benefit all the

stakeholders and clients.

Thus, we have decided to hire qualified and competent employees to occupy the

following positions;

 Chief Executive Officer

 Accounting and Tax Consultants

 Admin and HR Manager

 Marketing and Sales Executive

 Accountant

 Customer Care Executive / Front Desk Officer

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 Chief executive officer

Marketing and
Admin and HR manager Sales Executive

Marketing
Accounting and Tax Accountant and Sales
Consultants Executive

3.2 Roles and Responsibilities

The Chief executive: - will be responsible for overseeing management’s effectiveness by

recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers. The

responsibility also includes communicating values, strategies, and objectives; assigning

accountabilities; planning, monitoring, and appraising job results; developing incentives, and

developing an environment for offering information.

Accounting and Tax consultants: - responsible for providing accounting advice to

corporate clients Provides; accounting advice to individuals and small businesses; handling

accounts preparation; handling financial auditing services; overseeing the smooth running of HR

and administrative tasks for the organization about employee payroll and tax preparation

Admin and HR Manager; -The personnel will be responsible for the following tasks

 Oversees the smooth running of daily office activities.

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  Responsible for overseeing the smooth running of HR and administrative tasks for

the company

 Defines job positions for recruitment, manages the interviewing process, and designs

job descriptions

 Responsible for training, evaluation, and assessment of employees

 Ensures operation of equipment by completing preventive maintenance requirements;

calling for repairs.

 Responsible for arranging travel, meetings, and appointments

 Updates job knowledge by participating in educational opportunities; reading

professional publications; maintaining personal networks; participating in

professional organizations.

Marketing and Sales Executive: - is responsible for

 Identifies development opportunities; follows up on development leads and contacts

 Participates in the structuring and financing of projects and oversees the completion of

relevant projects.

 Identifies prioritizes and reaches out to partners, and business opportunities to increase

sales and growth for the company

 Writes persuasive proposal documents, negotiates fees and rates in line with company

policy

 Responsible for supervising implementation, advocating for the customer’s needs, and

communicating with clients

 Develops, executes, and evaluates new plans for expanding increase sales

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  Documents all customer contact and information

 Represents the company in strategic meetings

Accountant: The main responsibilities are inspecting the accounts of our employer(internal

auditing) and another organization that seek our services, and also acting in an advisory role to

recommend risk aversion measures and cost savings (external auditing).

The typical duties are :

 Responsible for preparing financial reports, budgets, and financial statements for the

organization; creates reports from the information concerning the recorded financial

transactions; prepares the income statement and balance sheet using the trial balance and

ledgers.

 collating, checking, and analyzing spreadsheet data

 examining company accounts and financial control systems

 gauging levels of financial risk within organizations

 checking that financial reports and records are accurate and reliable

 ensuring that assets are protected

 identifying if and where processes are not working as they should and advising on

changes to be made

 preparing reports budgets, commentaries, and financial statements

 liaising with managerial staff and presenting findings and recommendations

 ensuring procedures, policies, legislation, and regulations are correctly followed and

complied with

 Responsible for administering payrolls; ensures compliance with taxation legislation

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  Handles all financial transactions for the firm and serves as an internal auditor for the

firm

Client Service Executive / Front Desk Officer: - will be responsible for welcoming guests and

clients by greeting them in person or on the telephone; answering or directing inquiries. Ensures

that all contacts with clients (e-mail, walk-In center, SMS, or phone) and provide the client with

personalized customer service.

4. SWAT Analysis

Mefitihe Auditing Firm P.L.C Engaged the services of a core professional in the area of

structuring to assist the firm in building a well-organized audit firm that can well compete in the

highly competitive financial consulting services industry.

As a start-up business, we conducted a SWAT analysis. Here is a summary of the SWAT

analysis

Strength

Our core strength lies in

 The power of our team (workforce): - a team that is trained and equipped to pay

attention to details and to deliver excellent jobs.

 A dedication to training staff. All successful firms hire out of school and grow what they

need. 

 A great reputation of trust, integrity, and competence.

 Adaptability and adoption of technology and availability of a wide range of systems and

software.

 Strong firm cultures and teamwork.

 We have open relationships with clients and are available to our clients on short notice.

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  Plus, the need for the service is available under any circumstance. An accounting firm is

that it is generally immune from negative changes in the economy. People, especially

small business owners and private limited companies, are going to continue to need

advice and preparation of their taxes and financial statements in any economic climate

 The other strength of this type of business is that many forms of revenue can be

generated on a monthly, quarterly, and yearly basis. These revenue streams include

ongoing bookkeeping coupled with quarterly/yearly tax filings.

Weakness

As it relates to the weaknesses of an audit firm, there are substantial competitive threats. The

cost of starting a new accounting firm is high. Moreover, as a new audit firm, it might be

difficult for our company to break into the market and gain acceptance, especially from corporate

clients in the already saturated financial consulting services industry; that is perhaps our major

weakness. Also, we may not have the required cash to give our business the kind of publicity we

would have loved to.

Opportunities:

Considering the number of starts–ups and of course, corporate organizations that can’t afford

to do without the services of accounting service providers, the opportunities in the financial

services industry are massive. As a standard and well–positioned audit service provider, we are

ready to take advantage of any opportunity that comes our way.

Threats

Some of the threats that we are likely going to face as an audit firm operating in Addis Ababa

are other companies that operate in an identical capacity, government regulations, and changes in

technology.

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5. Market Analysis

5.1 Market Trend

The financial consulting services industry is very large and of course, it is one industry

that works for businesses across different industries. It is cheaper and less stressful to hire the

services of accounting service providers than to hire a qualified accountant especially when you

run a small business.

The truth is that it is becoming common to find even some bigger firms outsourcing their

accounting, tax, and auditing concerns to competent financial / auditing firms because it is cost-

effective to do so and minimize the hassle to manage financial issues and to stay correct and in

line with the law. However, there is a quality issue with the service. It requires improvement.

5.2 The Target markets

Mefitihe Auditing Firm P.L.C Will initially serve small and medium-sized businesses,

from new to well-established businesses and individual clients but this does not stop us from

growing to be able to compete with the leading audit service and reach out to big corporates and

organizations.

As a standard and licensed accounting service firm, Mefitihe Auditing Firm P.L.C. has a

wide range of accounting services hence we are well-trained and equipped to service a wide

range client base.

Our target market cuts across businesses of different sizes and industries. We are coming

into the industry with a business concept that will enable us to work with small businesses and

bigger corporations in and around Addis Ababa city other cities in Ethiopia in the future.

Below is a list of the businesses and organizations that we have specifically designed our

products and services for;

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  Entrepreneurs and Start-Ups

 Small and Medium-sized business

 Local NGOs

 Corporate Organizations

 Religious Organizations

 Hotels and restaurants

 Schools

 Hospitals

5.3. Audit service market Determinant factors

In the process of market prospect estimation for accounting services, analysis of the set of

factors that influence the demand for the service is essentially important and necessary. The

first step in the process involves analysis of the characteristics of the target market and the

general macroeconomic environmental aspects. The main factor that influences the demand

for accounting service are:

 Economic situation (the performance of the national economy)

 Political situations

 The number of accounting service providers around the target area

5.4 Competitive advantage

We are well aware that to be highly competitive in the accounting services industry

means that we should be able to deliver consistent quality service, and our clients should be able

to experience remarkable differences and improvements. Also, we should be able to meet the

expectations of clients.

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Mefitihe Auditing Firm P.L.C. might be a new competitor in the accounting services industry in

Addis Ababa, but the management staff and owners of the business are considered experts. They

are people who are core professionals and licensed and highly qualified accountants in Addis

Ababa. These are part of what will count as a competitive advantage for us. The second one is

we will offer our service at a fair price and are available to our clients on short notice as well as

deliver the service on time.

Lastly, our employees will be well taken care of, and their welfare package will be among the

best within our category (start–ups accounting service firms) in the industry meaning that they

will be more than willing to build the business with us and help deliver our set goals and achieve

all our aims and objectives.

6. Sales and marketing strategies

6.1 Sources of Income

Mefitihe Auditing Firm P.L.C is established to maximize profits in the accounting

service industry and we do all it takes to attract clients regularly and sign contracts with most of

our clients.

Mefitihe Auditing Firm P.L.C will generate income by offering the following accounting

services for start-ups, local NGOs, and for corporate organizations;

 Providing accounting advice to corporate clients

 Providing accounting advice to individuals and small businesses

 Accounts preparation

 Financial auditing services

 Financial statement review services

 General accounting services

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  Tax planning and consulting services

 Corporate tax preparation and representative services

 Providing other financial consulting and advisory-related services such as

bookkeeping, designing accounting systems, preparing financial statements,

developing budgets, tax preparation, and compliance work, consulting assistance,

restructuring, and providing advice on matters related to accounting.

6.2. Profit and loss Forecast

There would always be a need for the services of professional accounting services firms

from the start–ups, local NGOs, and corporate organizations. So, we are well-positioned to take

on the available market in Addis Ababa. We are quite optimistic that we will meet our set target

of making enough profits from the first six months to one year of operations and grow the

business and our business base beyond Addis Ababa to other cities in Ethiopia.

We have been able to critically examine the accounting service markets and we have

analyzed our chances in the industry and we have been able to come up with the following sales

forecast. The sales projections are based on information gathered on the field and some

assumptions that are peculiar to start-ups in Addis Ababa.

Below are the sales projections for Mefitihe Auditing Firm P.L.C based on the location

of our business and the wide range of accounting services that we will offer

1.1 Income Projection

Income from 1st year 2nd year 3rd year

Auditing services 150,000.00 840,000.00 980,000.00

Financial statement review services 80,000.00 250,000.00 550,000.00

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 Tax planning & consulting service 180,000.00 330,000.00 335,000.00

Financial reporting service 240,000.00 600,000.00 770,000.00

Total/average 650,000.00 2,020,000.00 2,635,000.0

N.B this projection is done based on what is obtainable in the industry and with the assumption

that there won’t be any major economic meltdowns and political issues within the period stated

above. And please note that the above projection might be lower and at the same time it might be

higher.

6.3 . Market research and strategies 

We are aware of the fact that there is strong competition amongst audit service firms and

other related financial consulting service providers in Addis Ababa. So, we will hire some of the

best business developers to handle our sales and marketing using fair market prices. Our sales

and marketing team will be recruited based on their vast experience in the business and they will

be trained regularly to be well-equipped to meet their targets and the overall goal of the

organization.

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Market Analysis

potential customers Average Year 1 Year 2 Year 3

Growth

Certified 44% 1,000,000.00 1,440,000.00 2,073,600.00

Accountant firm

Audit firm 56% 1,800,000.00 2,808,000.00 1,572,480.00

Total/average 50% 2,800,000.00 4,248,000.00 3,646,080.00

Mefitihe Auditing Firm P.L.C is set to make use of the following marketing and sales strategies

to attract clients;

 Introduce our business by sending introductory letters alongside our brochure in

target areas such as corporate organizations, schools, Businesses, non – Profit

Organizations

 Advertise our business in relevant financial and business-related magazines,

newspapers, TV stations, and radio stations.

 Will Use social media

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  Attend relevant international and local finance and business expos, seminars, and

business fairs

 Engage direct marketing approach

 Distribute our fliers and handbills in target areas

6.4. Our Pricing Strategy

Pricing strategy is one of the key marketing techniques used to win the competition and offer a

reasonable price to clients. Generally, the Ethiopian business environment pricing setting trend is

usually traditional. It does not consider the real economy and the potential of the customer. Most

of the time abnormal profit margin is set by most services and products to render companies.

Eventually, this will lead to losing the customer.

Therefore, at Mefitihe Auditing Firm P.L.C. we will sell our service with a normal profit

margin and keep our fees below the average market rate for all of our clients by collecting

payment in advance.  In addition, we will also offer special discounted rates to start–ups,

nonprofits local NGOs, and small businesses.

We are aware that some clients would need regular access to financial consultancy and services

and assistance, we will offer a flat rate for such services that will be custom-made to take care of

such clients’ needs.

6.5 Payment Options

The payment procedure adopted Mefitihe Auditing Firm P.L.C is all-inclusive because

we are quite aware that different customers prefer different payment options as it suits them but

at the same time, we will ensure that we abide by the financial rules and regulations of Ethiopia.

Here are the payments options that Mefitihe Auditing Firm P.L.C will make available to her

clients;

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  Payment via bank transfer

 Payment with cash

 Payment via credit cards / Point of Sale Machines (POS Machines)

 Payment via online bank transfer

 Payment via check

 Payment via mobile money transfer

 Payment Via Tele Birr

7. Publicity and advertising strategies

We have been able to work with our brand and publicity with business consultants that will

help us to map out publicity and advertising strategies to walk our way into our target market.

We have made provisions for effective publicity and advertisement of our accounting services

firm.

Below are the platforms we intend to promote and advertise Mefitihe Auditing Firm P.L.C Place

adverts on both print and electronic media platforms

 Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, and

YouTube to promote our brand

 Distribute our fliers and handbills in target areas

 Use local Magazines and news paper

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8. Financial Plan (analysis)

8.1. Project life

The allotted time for operation of the start of business plan preparation to secure the loan

and then complete the start-up process is 4 months. Considering the economic situation,

operation, and sales of service including repayment of the loan three years are considered. Since

the cost and benefits of this business Plan are computed over 3 years of the loan period.

8.2. Start-up Expenditure (Budget)

This is the financial projection and cost for starting the Mefitihe Auditing Firm P.L.C will

spend

A. One-time capital cost

No Item Cost

1 Permits & business license 3,000.00

2 Brand development, Logo & Basic website 50,000.00

3 Advertising and promotion by newspaper 25,000.00

4 Business card 7,000.00

5 Computer Hardware/software 150,000.00

6 Internet and telephone set-up service 4,000.00

7 Printer 27,000 .00

8 Office furniture (filing shelf, chair, table, guest 129,000.00

chair)

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 10 Set up and install office fixture 50,000.00

The total one-time start-up cost 445,000.00

B. Monthly expense

Item Cost

1 Payroll : Chief Executive Officer ( for 12 months)

120,000.00

2 Pay roll : Accounting & tax consultants(( for 12 months) 84,000.00

3 Pay roll : Admin & HR manager( for 12 months) 84,000.00

4 Pay roll : Marketing & sales Executive( for 12months) 72,000.00

5 Pay roll : Accountant( for 12 months) 84,000.00

6 Payroll : Customer care Executive/Front desk officer( for 12 60,000.00

months)

7 Benefit ( 10 % of basic salary) 50,400.00

8 Tax (pension employer,tot) 60,000.00

9 Office rent for 12 months 360,000.00

10 Utility expense 36,000.00

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 11 Miscellaneous expenses 70,000.00

Total monthly expense(ETB) 1,080,400.00

Going by the report from the market research and feasibility studies conducted, we will need

over 1,600,000.to successfully set – up a medium-scale but standard accounting services firm in

Ethiopia.

8.3. Generating Funds / Startup Capital

These are the areas we intend to generate our start-up capital;

 Generate part of the start-up capital from personal savings

 Source for soft loans from family members and friends

 Apply for a loan from my Bank

 Looking for partners

1. Sustainability and Expansion Strategy

The future of a business depends on the number of loyal potential customers and the

competence of the employees, the investment strategy, and the business structure. One of our

major goals in starting Mefitihe Auditing Firm P.L.C. is to build a business that will sustain and

be able to survive with its cash flow and that will not use the injection of finance from external

sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer

our accounting services a little bit cheaper than what is obtainable in the market and we are well

prepared to survive on a lower profit margin for a while.

Mefitihe Auditing Firm P.L.C Will make sure that the right foundation, structures, and

processes are put in place to ensure that our staff welfare is well taken of. Our company’s

20
corporate culture is designed to drive our business to greater heights and training and– training

our workforce is at the top burner of our business strategy.

To encourage the employees, a profit-sharing arrangement will be made available to all

our management staff and it will be based on their performance for three years or more as

determined by the board of the organization. We know that if is applied, we will be able to

successfully hire and retain the best employee we can get in the industry; they will be more

committed to helping us build the business of our dreams.

9. Conclusion

In the current business world, accounting service is a need for all kinds of businesses and

organizations. Few companies are engaged in the industry. Our company is one of those private

companies engaged in accounting services for businesses and organizations at different levels.

We have made research on the demand and the market potential for the service, and we found

and concluded that there is still a huge demand in Addis Ababa and other cities. Our assessment

confirmed that our proposed business and feasible and desirable.

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